Latest Prius wins Japan Car of the Year

Toyota Prius. Photo / Supplied

Toyota's third-generation Prius hybrid has won the Japan Car of the Year title, an award timed to coincide with the Tokyo Motor Show.

The panel of judges picked the Prius in recognition of its advances in technology, performance, fuel economy and lower emissions.

The Prius received 433 votes, beating its closest competitor, the Honda Insight, by only 42 votes. It was apparently the closest result in the 30-year history of the award.

Toyota says the Prius has been the best-selling model in Japan for the past five months - 31,000 units were sold there in September alone for 11 per cent of the market - and it is becoming more popular in other markets, too.

The carmaker's early lead in hybrids appears to be paying off - but rivals are hitting back hard. The Insight, for example, offers a less sophisticated hybrid drive-train in a similarly sized car but at a much lower price, while European companies are developing advanced diesel models that they claim match or better hybrids for "real world" fuel consumption.

The next step in hybrid development will be the adoption of plug-in technology, which will allow hybrids to run for a much larger proportion of any journey solely on electric power, with corresponding benefits for emissions and fuel economy.

The third-generation Prius was launched in New Zealand in August and has so far sold 169 units. The standard model costs $47,490 and the better equipped i-tech $62,090. The Honda Insight is expected here next year.